Fewer Employers Use Credit Checks- Good News for ID Theft Victims
August 11, 2012
Jackie here, with AllClear ID. Identity theft can wreak havoc on your credit report and finances. While these issues can typically be resolved, it takes time to correct mistakes and remove fraud. This used to be bad news for job hunters, since many employers require a credit check as part of the hiring process. Luckily a new study indicates that fewer employers are using credit reports to screen applicants and those that do are often willing to hire employees with low scores or give the applicant a chance to explain.
The report was issued by the Society of Human Resource Management. In 2012, 53% of employers indicated that they do not use credit reports in their hiring process. In 2010 this number was only 40% and in 2004 it was 39%. The employers most likely to use credit reports are those where a credit report is extremely relevant to the type of work performed– like in law enforcement or banking.
Another positive trend for id theft victim job-seekers is the fact that 91% of employers perform the credit report after a job offer has been made or after a successful interview, not at the beginning of the hiring process. This can give id theft victims a chance to explain the problems in their credit report without being automatically disqualified for a position.
For more information on this report, read this article on McClatchy.
Many states have gotten involved in regulating how and when employers can use credit checks. For example some states have passed laws limiting employers use of credit reports or prohibiting this practice altogether. States with job applicant credit report laws include: California, Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington. Many other states are considering legislation on this matter.
If you have suffered from identity theft and are searching for a job, you can breathe a sigh of relief knowing that your next employer might not require a credit check. Keep yourself safe during the job hunt by checking out our past blog post on “Protecting Your Identity While Job Hunting”.